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Change Amount to Create Purchase Order Revisions without Unreserve Funds - Encumbrance New Feature Included in March 2013 Rollup Patch (Doc ID 1548558.1)

Last updated on SEPTEMBER 20, 2021

Applies to:

Oracle Purchasing - Version 12.1.3 and later
Information in this document applies to any platform.
This feature is supported only for Encumbrance enabled documents.


This document highlights

  1. The changes done to allow revisions of Purchase Orders to be created without having a need to un-reserve the funds already reserved against the approved Purchase Orders.
  2. Provision to view the budgetary postings of encumbered orders/agreements


Scope of the Feature



Oracle Purchasing allows reserving of budgetary funds for Requisitions, Orders and Agreements that are created in an Operating Unit where Encumbrance Accounting is enabled.  The current functionality allows a Purchase Requisition to be reserved as a commitment at the time of approval of the requisition. The commitment encumbrance on the Purchase Requisitions will be liquidated when the funds are reserved against the corresponding Purchase Order (obligating document). The funds are reserved against the corresponding Budget Accounts specified against each distribution of the Purchase Requisition or the Purchase Order.

Currently modification to an approved Purchase Order document can be done only after performing the “Unreserve” Action on the order document. When the “Unreserve” action is performed on an order document that has a backing requisition then the current functionality ensures that the funds are un-reserved from the Order document, but the same funds are re-reserved against the backing requisitions to preserve the availability of funds for the Modified Order document. For example, when an Order for $100 that has a backing Requisition is “Unreserved” for performing modifications, the $100 will be un-reserved from the Order and the backing Requisition will be reserved for $ 100.

In certain scenarios that were brought to our notice by some of our customers, there were instances where the amount of re-reserved funds on the backing requisitions were not sufficient to re-obligate the modified document.

To avoid such scenarios, we have re-designed the whole funds reserve / un-reserve solution in Oracle Purchasing to allow an approved Purchase Order to be modified without having the need to un-reserve the funds already reserved on the document. When an approved order is revised and the revision is approved, only the incremental increase or decrease will be reserved / un-reserved for the order document. With this change, there can be multiple incremental reserve / un-reserve of funds for an Order document, if multiple revisions are created in future. To facilitate and understand the accounting entries in such scenarios, a new action “View Accounting” is introduced. This Action will help to view Accounting entries for a given Order document.



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In this Document
 Scenario 1 - Increase PO amount using Change Amount function
 Scenario 2 - Decrease PO amount using Change Amount function

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